Can you really value the value of your property, or the property market in general, on a day-to-day basis, considering the vast diversity in locations, sizes and prices.

I don’t think so!

It’s like tracking the value of a share in one particular company based on the movement of the ASX 200 share index. There could be a correlation, but often there isn’t.

We know that there is not one property market.

Each state has it’s own market and then within each state there are geographic markets as well as different markets at different price points.

Then there is the house and land market, the established house market, the apartment market and off the plan market. Of course I could go on and on.

Property values sometimes vary from one end of the street to the other as well as at different levels in a high-rise apartment block.

So while this new index is academically interesting, there is nothing that will replace on the ground knowledge of a specific property market.

What do others say?

Many have criticized this new index so RPData have come out in it’s defense and explained the rational behind it and dispelled some myths in this blog

What does the index tell us?

The current index shows that sectors of our property market are consolidating and there may be some light at the end of the tunnel for our markets that have been in the downturn phase of the property cycle.

Clearly it’s only one month’s data where these changes are evident, but the improvement is encouraging.

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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au

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